Higher Accounting - Company Accounts Theory (plc)


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  • 1. Multiple-choice
    30 seconds
    1 pt

    Which of the following features does NOT relate to a Private Limited Company (Ltd)?

    Does not sell shares to the public - invited shareholders only

    Shareholders have limited liability - they cannot lose more than the amount of money they have invested

    Usually owned by only a few people (shareholders), usually family and friends

    Shares in an Ltd company are available to purchase on stock market

  • 2. Multiple-choice
    30 seconds
    1 pt

    Which of the following are advantages of a Private Limited Company (Ltd)? - Choose THREE answers

    Shareholders have limited liability

    Control of the company is not lost to outsiders

    Profits are shared amongst all shareholders

    More finance can be raised from shareholders and lenders should the business require additional equity

  • 3. Multiple-choice
    30 seconds
    1 pt

    Which THREE of the following features relate to a Public Limited Company (plc)?

    Shares are offered to the general public for sale through the stock exchange

    Run by a Board of Directors who are elected at the Annual General Meeting on behalf of shareholders

    Accounts must be lodged with Registrar of Public Companies and are published

    Shareholders must be invited personally by Board of Directors

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